HKMA's Yu Wai-man: Future Licenses Will Be Limited in Number

On April 10, Yu Wai-man, the Chief Executive of the Hong Kong Monetary Authority (HKMA), stated that after the official launch of stablecoins in the market, the HKMA will conduct ongoing and effective supervision based on the business and risk nature of individual licensees. This will involve on-site inspections, off-site reviews, independent assessments, and meetings with the management of the licensees to ensure compliance with relevant regulatory requirements. Regarding the future issuance of licenses and the timing, Yu emphasized that the HKMA maintains an open yet cautious approach and currently has no clear inclination. 'However, we must reiterate that considering the risks involved in issuance, user protection, and the market's capacity and long-term development, there are quite high thresholds for licensing. Even if licenses are issued in the future, the overall number will be very limited. The operational effectiveness of the two licenses after implementation and the market's response will also help us make a more comprehensive assessment,' Yu said. (Shanghai Securities Journal)